In 2025, asking an employer if they’re using their Apprenticeship Levy is no longer the right question.
The real question is: Do they have an apprenticeship levy strategy?
Because without one, even the most well-intentioned businesses risk letting valuable development opportunities, and funding, slip through the cracks.
It’s not that HR and L&D teams don’t care. Far from it. They’re managing recruitment challenges, internal development, wellbeing initiatives, regulatory changes, and performance management, all while trying to retain their best people.
The Apprenticeship Levy (or newly named Growth and Skills Levy!) often doesn’t make it onto the agenda, let alone the priority list.
But with the right apprenticeship levy strategy, it can become a powerful tool for workforce transformation.
The Awareness Gap
Despite being introduced in 2017, the Apprenticeship Levy remains underutilised by many employers.
According to recent data, the average UK employer spends less than 20% of their available levy each year. That’s not due to lack of interest, but rather a lack of clarity.
Many companies still associate apprenticeships with entry-level roles or school leavers.
They don’t realise that there are accredited programmes designed for existing staff in roles like sales, operations, project management, and leadership. They’re unaware that the levy can be used to upskill current employees, not just bring in new ones.
And crucially, they often don’t know how much they’re losing. Levy funds expire after 24 months. For a mid-sized business, that could mean hundreds of thousands of pounds quietly disappearing from the balance sheet.
Building an Apprenticeship Levy Strategy That Works
An effective apprenticeship levy strategy starts with understanding what’s available, and as we always say at Instep, aligning it with your company’s specific goals.
Stop thinking about employee training as a box-tick exercise, and start thinking about how levy-funded training can solve real business problems, such as:
- Talent retention: Employees are more likely to stay when they see a clear path for development.
- Leadership capability: Emerging managers can be supported with structured, accredited training.
- Digital transformation: Teams can build the data and digital skills needed to adapt to new technologies.
- Internal mobility: Upskilling existing staff reduces the need for external recruitment and supports succession planning.
And all of this can be achieved with funding that, in many cases, is already sitting in your account!
Speaking the Language of the Business
To make the case for levy-funded training, HR leaders need to frame the conversation in terms that resonate with senior stakeholders.
Having an apprenticeship levy strategy isn’t not about “spending the levy.” It’s about:
- Reducing recruitment costs
- Improving productivity
- Mitigating risk through better leadership
- Supporting digital initiatives with the right skills
Imagine being able to walk into a meeting with your CFO or Head of Operations and say:
“Based on our size and sector, we likely have a levy pot of around £380,000. We’ve spent less than 20% of it this year. There are programmes available that align directly with our operational and leadership roles. With a clear plan, we could develop our people, reduce turnover, and improve performance, all without increasing our L&D budget.”
Now that’s what we call an apprenticeship levy strategy.
Insight Over Information
What employers need isn’t more information about the levy. They need insight. They need someone who can help them connect the dots between funding, workforce planning, and business outcomes.
That’s where the right training partner makes all the difference.
At Instep UK, we work with businesses in the UK to map apprenticeship standards to real business roles. We help HR teams build development plans that align with strategic goals. And we support learners with programmes that are practical, flexible, and designed for impact.
Take our Data Skills & Confidence Level 3 programme, for example. It’s designed to help professionals across departments, from operations to HR, build the confidence to work with data, automate tasks, and communicate insights clearly. It supports digital fluency, which underpins everything from AI adoption to better decision-making.
Making It Happen
If you’re an HR or L&D leader looking to make better use of your levy, here’s where to start:
- Find out your levy balance
Speak to your finance team or training provider. Understand what’s available and when it expires. - Map your workforce needs
Identify roles or departments where development could reduce risk, improve performance, or support retention. - Develop your apprenticeship levy strategy
Align training opportunities with business goals. Focus on outcomes like reduced turnover, improved productivity, or succession planning. - Use the Apprenticeship Levy effectively
Leverage existing funding to make training accessible and sustainable. - Choose a partner who understands your world
Work with a provider who can offer more than just training; they should offer insight, support, and alignment with your strategy.
Start Taking Advantage
The Apprenticeship Levy is a strategic asset to your business. But only if it’s used with intention.
In a time when budgets are tight, talent is scarce, and change is constant, the smartest companies are those who invest in their people with purpose, with clarity, and with a well-defined apprenticeship levy strategy.
If you’re ready to turn your levy into a lever for growth, we’re here to help.
Get in touch for a free apprenticeship levy strategy evaluation with one of our expert education consultants.
